Analysis On Legal Issues Concerning The Legalization Of Private Placement Of Securities Investment Fund In China

By the end of the year 2006, stock market in China had experienced a big increase. Since 2007, Partnership Enterprise Law specified the legal status of limited partnerships, the participation of Private Placement of Securities Investment Fund have greatly emerged. Economy legislation in China has been leaping forward in recent years. A series of laws in related to securities have been improved. There are also many discussions on the legal supervision system for the Private Placement of Securities Investment Fund in the academic circle. Concerning about the Private Placement of Securities Investment Fund in China, since its legislation process has already begun, the perfecting of the relating laws becomes urgent.Despite the rapid progress of the Private Placement of Securities Investment Fund, lacking clear definition and corresponding laws for the operating system causes many problems difficult to solve, as well as the arising of new problems. This paper points out the necessity and urgency of the legislation of the Private Placement of Securities Investment Fund, which badly needs definite and perspicuous supervision, but not too strict. All the concerning subjects' legal status should be clearly defined. Credit grading system and market entry should be carried out. The contents of the supervision should be demarcated. We should also have supervising departments and new means of supervising to prevent the confusion caused by various departments and regulations. The features of this paper are the following: based on the conditions of our country, pointing out that the Private Placement of Securities Investment Fund is a by-product during the rapid development of market economy nowadays. The legislation process should be a dynamic one and the accomplishment of the relating legal supervision system is a long-term process, which will gradually form a perfect legal system. The legislation principle should pay more attention to dealing with problems concerning the interests of state and interests of various aspects equally. Risk management should be combined with credit grading system and market entry. We also should transit from being supervised by various departments to a core department during the legislation process.